Suppose a share of stock is expected to pay an annual dividend of $12 forever. At a discount rate of 9.4 percent, the share's market price should be
A) $12.77.
B) $13.13.
C) $112.80.
D) $127.66.
D
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In 2004, hurricanes destroyed a large portion of Florida's grapefruit crop. How did this affect the market price and market quantity of grapefruit?
What will be an ideal response?
Which of the following statements is true?
A) The expected return and standard deviation of return are greater for common stock than for U.S. Treasury bills. B) The expected return on common stocks is greater than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is less than the standard deviation of return for U.S. Treasury bills C) The expected return on common stocks is less than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is greater than the standard deviation of return for U.S. Treasury bills. D) The expected return and standard deviation of return are less for common stocks than for U.S. Treasury bills.
Technological progress occurs when the economy gets more output:
A. without any more capital or labor. B. by using more capital per worker. C. by using more capital but not more workers. D. by using more labor but not more capital.
For most goods, the real-income effect of a price change is
A. small because the decision to buy a good depends only on the income of a consumer. B. large because the price of the good is in terms of the currency and the income of the person is also in terms of the currency. C. zero because the real-income effect only applies to durable goods. D. small because the good accounts for a small part of the consumer's budget.